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Michael Paul Accountants

Sage Accruals Function

6th August 2011

Paul from Michael Paul Accountants Northamptonshire reviews the accruals option in the Sage accounts month end function.

The concepts of accruals and the method for running the month end Sage procedure have been described in earlier articles.  This article focuses on how to set accruals within Sage to automatically post when the month end procedure is run and the Post Accruals option is selected.

The Sage accruals function is relatively straight forward to use.

  1. From the Company Module click Nominal Ledger (Links Pane)
  2. From the Nominal Ledger window, click Accrual
  3. Enter the following information
    • N/C – This is the nominal code of the accrual.  For example if entering a regular electricity accrual this may be the Light & Heat nominal account
    • Details – e.g. ‘Electricity Accrual’ .
    • Dept & Fund – Many companies do not use these fields so only complete them if necessary
    • Accrual N/C – This is the nominal code of the accruals account (commonly 2109)
    • Value – The total value of the accrual.
    • Months – the number of months over which the accrual is to be spread.
    • Monthly Amount – this is calculated automatically by Sage from using the total accrual value and the number of months the accrual is to be over.
    • Posted – this is another display only box and shows the number of accruals which have already been made.

Each time the month end procedure is run a journal will automatically be made debiting the accruals account and crediting the other relevant nominal account.

At Michael Paul Accountants Kettering, Corby, Northampton and Market Harborough are conveniently located near to our premises in Lamport although we have clients from all over the UK.  We are a firm of Chartered Certified Accountants ensuring you receive a professional and competent service at all times.  We specialise in small businesses, medium sized businesses, sole traders, partnerships and individuals who have to file a tax return.

If you need any advice regarding Sage or any other accounting or taxation matters please don’t hesitate to contact us.


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